Exploring the LNG Option for OSV’s

Exploring the LNG Option for OSV’s – OSV Brazil 20121 © Wärtsilä

Terje Nordtun Wärtsilä

OSV BRAZIL 22nd – 23rd May 2012

Contents

1. Introduction – why use LNG?

2. Dual Fuel Engine Technology – features and benefits

3. LNG Storage and Handling- Wärtsilä LNGPac

4. Proven Vessel Solutions - arrangement, references, operational experience

5. Conclusion

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1. Introduction

Why use LNG?

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Factor trends: Environment

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Factor trends: Environment

LOCAL

GLOBAL

LOCAL

LOCAL

Acid rainsTier II (2011)Tier III (2016)NOx

Greenhouse effectUnder evaluation by IMO

CO2

Acid rainsSulphur content in fuelSOx

Direct impact on humansLocally regulated

Particulatematter

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NOx reduction – IMO requirements

0 200 400 600 800 1000 1200 1400 1600 1800 2000

6

8

10

12

14

16

18

2

0

Specific NOx emissions (g/kWh)

Rated engine speed (rpm)

Tier II (global 2011)Ships built 2011 onwardsEngines > 130 kW

Tier III (ECAs 2016)Ships in designated areas, 2016 onwardsEngines > 130 kW

Tier IShips built 2000 onwardsEngines > 130 kW

Retrofit: Ships built1990 – 2000 Engines > 90 litres/cylinderand > 5000 kWDry/Wet Methods

4Selective Catalytic Reduction

Wärtsilä dual-fueltechnology

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Emission Control Areas

existing ECAs: Baltic Sea, North Sea

planned ECAs: Coasts of USA, Hawaii and Canada

discussed ECAs: Coasts of Mexico, Coasts of Alaska and Great Lakes, Singapore, Hong Kong, Korea, Australia, Black Sea, Mediterranean Sea (2014), Tokyo Bay (in 2015)

Most used trading routes

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Factor trends: Fuel Availability and Prices

Sources: www.lngoneworld.com, www.bunkerworld.com, LR Fairplay

0

5

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35

Oct-01

Feb-0

2

Jun-0

2

Oct-02

Feb-0

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Jun-0

3

Oct-03

Feb-0

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Jun-0

4

Oct-04

Feb-0

5

Jun-0

5

Oct-05

Feb-0

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Oct-06

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Oct-07

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Oct-08

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Feb-1

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Jun-1

1

USD

/MB

tu

LNG Japan average [USD/MBtu]

NG Henry hub [USD/MBtu]

HFO 380cst Rotterdam [USD/MBtu]

MGO Rotterdam [USD/MBtu]

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Features and Benefits

2. Dual Fuel Engine Technology

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DUAL-FUEL (DF)

GAS-DIESEL (GD)

Gas burning technologies

SPARK-IGNITION GAS (SG)

1987 1992 1995

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* ** ** * **

******** * ****

* *

Intake ofair and gas

Compression ofair and gas

Ignition bypilot diesel fuel

Otto principle

Low-pressure gas admission

Pilot diesel injection

Gas mode: Ex. In. Ex. In.Ex. In.

Intake ofair

Compression ofair

Injection ofdiesel fuel

Diesel principle

Diesel injection

Diesel mode:Ex. In. Ex. In.Ex. In.

Dual-fuel engine - operating principle

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Dual-Fuel Engine Portfolio

0 5 10 15

34DF

20V34DF

12V34DF

9L34DF

6L34DF

16V34DF

18V50DF 17.55 MW

16V50DF

12V50DF

9L50DF

8L50DF

6L50DF50DF

20DF

9L20DF

8L20DF

6L20DF 1.0 MW

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Emission advantage

CO2

NOx

SOx

Particulates

Dual-Fuel enginein gas mode

Dieselengine

0

10

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30

40

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60

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80

90

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Emissionvalues [%]

-25%

-85%

-100%

-100%

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Dual-Fuel advantages

Main advantages of the Dual-Fuel 4-stroke engine compared to SG:• Redundancy, backup without interruptions in power or speed.• Able to operate on liquid fuel outside ECA-area• Simple system, no PTI/”take me home” or double gas system needed.• DP class fulfilled with single tank/gas supply system• Operational flexibility - Vessel re-routing possible, gas supply not a

limitation

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Dual-Fuel applications - References

4 segments 177 installations > 5’000’000 running hours

Power Plants

DF Power Plant51 installations186 enginesOnline since1997

Merchant

LNGC• 108 vessels• 429 engines

Conversion• 1 Chem. Tanker• 2 engines conv.• Complete gas

train• Complete design

Offshore

PSVs/FPSOs• 20 vessels• 71 engines• Online from 1994New orders:• Harvey Gulf; the

first 4 LNG-PSV to be operated in the Gulf of Mexico!

Cruiseand Ferry

LNG ferries• 1+1 vessels• 4 engines per

vessels• Complete gas

train• 2800 passengers• In service in 2013

Navy

Coastal Patrol• Coming…

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3. LNG Storage and Handling

Wärtsilä LNGPac

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0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

MDO LNG (10 bar)

STORAGE VOLUME (RELATIVE)Fuel Tank Tank room

LNG storage Volume

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LNG system in PrincipalLNG filling line

LNG tank

Pressure build-up circuit

Water /glycol

Evaporator

Stop and Master valve

Gas Valve Unit (GVU)

Tank room

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Wärtsilä LNGPac: A turn key solution

Tank room –All cryogenic valves

Auxiliary equipmentroom

Length minimized

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Proven Vessel Solutions

• Arrangements• References• Operational experiences

Offshore supply vessel arrangement

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Wärtsilä LNG PSV

Eidesvik – Pioneers in LNG operation

• Operational experience with OSV’s powered by LNG:(all vessels are of Wärtsilä design and equipped with WartsilaDF engines)

Viking EnergyFrom April 2003Viking Energy

From April 2003

Viking QueenFrom January 2008

Viking QueenFrom January 2008

Viking LadyFrom May 2009

Viking LadyFrom May 2009

Viking PrinceFrom March 2012

Viking PrinceFrom March 2012

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The first LNG Powered OSV’s

Viking Energy

Stril Pioner

• Delivered 2003• Main Engines: 4 x Wärtsilä 6L32DF• Operating in the North Sea for Statoil

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Operational Experience - Viking Energy

• Gas mode is the normal operational mode, contributing to 97 % of the total energy production onboard.

• Diesel mode is only required during LNG refueling, certain minor preventive maintenance operations, or if triggered by alarms.

• Viking Energy has been 9 years in operation without one single hour of technical off-hire caused by the gas system on board.

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Dual Fuel Operation and Maintenance

“LNG and natural gas system proven very reliable.Scavenging air channel after 14 000 hours operation

Maintenance interval is now set to 25 000 hours”

Quote from Eidesvik:

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Stril Pioneer - 2003

Normand Arctic- 2012

Viking Energy - 2003

Viking Queen - 2008

Viking Lady - 2009

Skandi Gamma - 2011

All equipped with Wärtsilä DF engines

LNG Powered OSV’s in Operation

Viking Prince - 2012

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LNG OSV’s on Order with Wärtsilä DF

4 x PSV’s for Harvey Gulf

1 x PSV for Eidesvik Offshore

1 x PSV for REM Offshore

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Conclusions – The facts:

• LNG is an environmental friendly fuel reducing shipping emissions

• Use of LNG as fuel will also reduce fuel cost

• Wärtsilä has proven solutions for complete LNG propulsion systems including storage and handling onboard ships

• Application of DF engines gives high flexibility and redundancy and is the preferred solution for OSV’s

• The Wärtsilä DF technology is well proven with more than 5.000.000 accumulated running hours

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Thank you!

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